Mellody Hobson talks about preparing for retirement on today’s “Money Mondays” segment.
I know it’s something I talk about a lot, but retirement is the MOST important thing Americans will ever save for—more important than home ownership or their kids’ education and definitely more important than summer vacation.
More important than education?
Absolutely. It’s funny to me how many people are surprised by this, but you MUST make your own retirement a priority above paying for your kids’ education. Here’s the reason: While there are a multitude of scholarships and loans available for college students, there are no scholarships for retirement. Your children will have their whole careers ahead of them to pay off loans, whereas you may putting yourself at financial risk—and ultimately, your kids—if you delay saving for your own retirement.
I like to describe it like being on an airplane when the flight attendant explains how to use the air mask, and that you need to secure YOUR air mask BEFORE you attend to a small child. First, get on track for retirement, then you can think about funding little Johnny’s college plan.